Kashmiri carpet industry - Problems & solutions

1. Shubham
Chaturvedi
E-21

2.  According to an article by Indian Brand Equity
Foundation, India accounts for 61 per cent of the
global loom age, 22 per cent of the global spindle
age, 12 per cent of the world's production of textile
fibres and yarn and 25 per cent share in the total
world trade of cotton yarn.
 Exports of carpets increased from US$ 654.32
million in 2004-05 to US$ 930.69 million in 2006-07,
showing a growth rate of 42.23 per cent.
 During April-October 2007, carpet exports totalled
US$ 404.74 million. This makes India the world
leader in carpet exports with 36% of the global
market share.

3.  Lack of innovation – For long Indian carpets
are seen as poor substitutes of Persian and
related works. They lack any innovation or
new design , for years only the same designs
are copied with some variations in price and
color.
 Lack of facilities for labor – The labors working
in these factories lack basic quality of life such
as hygiene , etc. The per capita income of a
Kashmiri labour is 10,685 only .

4.  Lack of Indian Market - Lack of market
channels for Kashmiri carpet in Indian market.
Due to lack of awareness among Indians and
Indian market , Kashmiri carpet is exported but
not consumed domestically, which is making it
loose a large chunk of consumers.
 Poor reform in production system – No
introduction of new technology since
Independence . Labors are working without
any new tecnique and with their hands only.

6.  To improve the growth of Indian Carpet
Industry; there are some basic management
tools like 4P’s & 4C’s which would be helpful.
 Also, the factors that can be useful for the
growth of the Carpet Industry are discussed as
below:
 A) 4P’s
1. Product- Handmade Indian carpets/rugs
2. Place- Home Furnishing Stores and in upper
class suburban areas

7.  3. Price- Specialty hand made rugs can cost from
10,000 to 25,000 rupees or less
 4. Promotion- TV ads and Newspaper, Internet etc.
 B) 4C’s
 1. Customer solution- One on one with the
customers. Employees will sell the carpet direct to
customer
 2. Customer’s cost- Customer’s cost will depend on
the type of carpet they want.

8.  3. Convenience- Buy online because it’s easier
in suburban areas
 4. Communication- TV and newspaper,
Internet etc.
 Introduction under MNREGA – Carpet
industry should come under MNREGA
concept making it possible for labors to earn a
bare minimum days of employment and wage.

9.  Upgrading and maintaining carpet quality-
since carpet is not a full time job, most of the
labour involve in carpet weaving is unskilled
and primarily depend on agriculture, so they
don’t know the importance of quality of a
carpet and don’t give much attention to quality
aspect.
 Lack of modern production facilities
particularly dyeing,
washing,processing,designing etc.

10. THANK YOU